thanks for wraching "state of the union." i'm candy crowley in washington. our coverage of the fiscal showdown in washington continues right now. good afternoon. i'm miguel marquez at cnn headquarters. we have some developments in the partial government shutdown we want to bring to you. right now the senate is convening behind the scenes. majority leader harry reid and republican leader mitch mcconnell are holding talks to end the shutdown and reach a deal on the debt ceiling just days -- four days before that deadline. let's go right to mark preston on capitol hill. mark, what's happening there? is there any movement? what are you hearing? >> reporter: i have to tell you,

miguel, this is a rather rare session of the united states senate gaveling in on a sunday afternoon. we hope now that senator harry reid and senator mitch mcconnell will be able to get together. the ball has been handed to them right now. collapse is the best way to describe what has happened between the talks between house republicans and president obama that happened on friday. right now the ball is in the united states senate court. it's really in the hands of senator harry reid and senator mitch mcconnell. we're four days until the treasury says we will be out of money or be out of enough money to pay all our creditors and we are now heading into the third week of the u.s. government shutdown, miguel. >> when we say the senate is coming back into session, are they likely to hold a vote today or is this something they do simply so that the two sides can get together and continue these talks in a more formal and official way? >> reporter: well, miguel, in many ways it is the latter. we probably won't see much happen on the u.s. senate floor today unless some kind of deal is struck in the coming hours.

right now all of the negotiations, all of the discussions will take place behind closed doors. if there is some kind of deal struck, if there's some kind of resolution reached, that is when we will hear it from the senate floor, but that's not something i expect to hear certainly in the near term if not probably later into the evening. miguel? >> despite the markets opening tomorrow in spite of the holiday, with he know everybody is sort of focused on the effects of what happens in washington on the markets not only in the u.s. but around the world certainly with many countries still struggling to get back up on their feet. the decision that these folks are making behind those closed doors obviously couldn't be of greater import. we've seen this before though. we've seen the senate and the white house come to an agreement and kick it back over to the house. is that what we're likely to be looking at at 11:59 on wednesday evening, that the white house comes up with a deal and kicks it back over to the house? >> well, miguel, certainly if this goes down to the wire into

thursday, we'll probably see some repercussions in the markets before hand. there will be skittishness, concern a deal will not be able to get struck. in many ways a deal needs to be cut sooner rather than later to ensure we don't see markets here in the united states or around the world start to go south. so that is what we expect to hear today or we hope to hear today anyway, that there is at least some kind of movement, some kind of discussion, if not even a deal, that there is some kind of understanding they will be able to raise the debt ceili ceiling. >> harry reid is on the senate floor. we want to listen in. >> madam president, yesterday republicans voted to stop the senate from even debating legislation to avert a catastrophic default on the nation's debt. they stopped this body from even discussing the single most important issue facing this nation, the loss of the full faith and credit of our great country. and they did so under the

pretext that refusing to pay the country's bills would somehow make those bills disappear. no one denies this nation has work to do to reduce its debt, but republicans say this country should default on its debt today. they're the same republicans who ran up the debt just a few short years ago. these same republicans charged more than $4 trillion in tax breaks for the rich on the american taxpayers' credit card. they paid for two wars costing about $2 trillion with borrowed money. and they rang up $400 billion tab for a medicare prescription drug plan, and madam president, they ran up the nation's credit card for years and years on lots of stuff. now, madam president, there was one conversation on one of the sunday shows today that said we were trying to break the cap set

in the budget act, and we know that on january 15th, that's the second year of sequestration. madam president, we voted differently than that. we voted to extend the cr to november 15th, not a word about breaking the caps. we're happy to go forward with the cr as we've already voted for in this body. so any talk about breaking the caps is not anything that came from us. so yet every single republican refused yesterday to even talk about paying the bill now that it's due. madam president, the presiding officer and everyone in this body knows, and i think the american people know, that i met yesterday with senator mcconnell. we're in conversation today. i'm confident the republicans will allow the government to open and extend the ability of this country to pay its bills,

and i'm going to do everything that i can throughout the day to accomplish just this. it's important we do this, we must do this. it's the height of hypocrisy to not pay our bills, height of irresponsibility. americans want congress to compromise. they want congress to give economic certainty and security, not more indecision and doubt. americans want congress to do its job, that's all they're asking us to do. americans want congress to reopen the government, take the threat of default off the table, and sit down to talk about a long-term budget deal that creates jobs and strengthens the middle class, and i'm confident and hopeful that will be accomplished. >> under the previous order the leadership time is reserved. >> okay. so there is harry reid. he's laying out the democratic sort of opening salvo. mark preston, i want to come back to you briefly because you guys have been keeping track,

assuming the senate can get a deal that the white house can buy off on and they vote on it and send it over to the house at some point this week, assuming they can do, that you have been keeping track on the number of house members, republicans, who would vote for a clean cr. what is that number and where are we on that? >> reporter: there could be an incredible amount of pressure put on house speaker john boehner. let's assume there is some kind of deal struck between the white house and the senate, between senate democrats and republicans. if it were to ping-pong back to the house of representatives, there might be a majority of republicans who actually don't agree with that deal and do not want to see that deal cut. however, that is going to put an incredible amount of pressure on john boehner, the republican, the house speaker. does he still allow that legislation to go to the floor for a vote, and if that were to be the case, we know of at least 19 republicans that would join 200 democrats in the house. that is basically the bare majority to have that pass through the house of representatives.

now, i have to say, miguel, if that were to be the case, we would expect more than 219 members of the house of representativ representatives, democrats and republicans, to support something but that would put john boehner in a very difficult position if house republicans, a majority of them, don't like the deal. >> very, very interesting. we'll let you shake the trees on capitol hill and see what falls out there for a bit, mark. we want to go over to candy crowley, our cnn chief political correspondent and anchor of "state of the union." we heard senator rand paul say on your show that a deal on the debt limit should be reached before the deadline. how significant is that and how do you see what's happening now in the senate playing into that? >> well, certainly he's been one of those that has said that he thinks the president is trying to scare people, not all that many horrible things will happen if the debt ceiling slides for a while. but he did allow as how it would be better to reach a deal. the problem is everybody says they don't want the government shut down, and everybody says they don't want to bust through the debt ceiling, but they

totally disagree on how to get there. it sounds to me from senator harry reid's opening remarks that they're still pretty much nowhere on this. we know there are side talks going on outside the leadership. we'll wait and see how much traction that gets. but i think we're still pretty much where we were with everyone recognizing the importance of this, but right now the other dynamic i would also watch is senate republicans versus house republicans as one house republican said to me this morning, listen, if there's anything that rivals how house republicans feel about president obama, it's how house republicans feel about the senate. there is an institutional rivalry here that's kind of at a very tense high point, and republicans on the house left saying we think the senate republicans are going to sell us out. so that dynamic may well shape what's going on on the senate

floor in terms of what kind of package they'll pass because obviously it doesn't do any good if the senate passes a budget package with a lot of republican votes if the house is going to look at it and say we're not going to put it on the floor. >> the language seems to have changed in the sense that the -- harry reid and the democrats are now talking about breaking that sequestration funding levels basically. they want no caps on what the government can spend. republicans saying -- rand paul said today that's something new, we can't do that. is that a position that the democrats are taking so they can give in to that eventually or do they actually want -- they really think they're going to get money back from the sequestration? >> let me not get too far into the weeds and tell you this. democrats have felt all along that those mandated budget cuts were too deep and were causing too much havoc. the next time a mandated budget cut sort of across the board sort of indiscriminate across

the board cuts happens is january 15th. the democrats deny that that's part of their bargaining deal. they say that didn't come from us. so setting that aside, democrats have always felt that they wanted at least the discretion within departments to decide where the cuts should come from. so it is a sticking point in the 50,000 foot view, but sequestration is in place in case no budget deal is reached. so if they could reach a budget deal that's somewhat permanent and still fits under those caps, e questions trati-- sequestrati goes away. sequestration is out there and will figure into any long-term budget deals. >> you spoke to amy klobuchar from minnesota and susan collins, whose compromise deal was rejected by senate democrats yesterday. how are they -- are you feeling any better coming out of that

and where collins and sort of moderates are at this point? >> certainly that effort continues. it was rejected out of hand by the senate majority leader, and both klobuchar, who is a democrat, and susan collins, who is a republican, said they were startled by that. klobuchar said she didn't think the majority leader actually meant to just sort of reject it. so that effort still continues, but, you know, we've had a lot of these gangs of sixes and gangs of eight and gangs of 12 who try to have a smaller group to figure out a larger package, most recently on immigration, and sometimes they work and sometimes they don't. but it is where packages are passed. it's where bills are passed in the senate is in the middle. so they are starting in the middle and we'll see how far that goes. >> anything -- i think we have a little bit of her from your show today that we'd like to listen to. >> i was very surprised when senator reid said that.

i don't know why he said it. i don't think it was very constructive, but the fact is we have a responsibility to govern, and we're continuing to talk, and i'm still hopeful that at least we sparked a dialogue that did not exist. >> completely reasonable, both of those senators who were on your show today. you see what is happening now. it is extraordinary, i suppose, for the senate to be in session on a sunday. >> it's rare, yeah. >> is your sense that the pressure is truly on and we could see this go up to 11:59 p.m. on wednesday? >> congress tends to expand the amount of time it's allowed, so it's kind of like doing homework. absolutely it will probably go down to the wire. it may go over the wire. and in which case maybe they're close to a deal and they keep going. these two senators were quite optimistic about it. you heard senator reid say on the floor that he was optimistic

and hopeful. but we've hit a lot of optimistic hopeful signs along the way, and we come away still kind of where we are, so i think we have to see it play out, about at this moment the talk is very upbeat, but i wouldn't discount that a lot of these senators, certainly the white house, are watching wall street and they don't want to spook the markets. >> sure. >> so the hopeful talk is helpful in that way. >> well, we live in hope and it's time for action. we want to go to mark preston who has seen plenty of action over at the house and the senate on capitol hill. mark, i understand you have been working some sources and have something for us. what do you got? >> you know, miguel, i think we have to be careful over the next couple hours. these are going to be very delicate discussions, as we saw harry reid come on the senate floor. he had some fighting words but he did offer some hope. i think it's instructive to note we did not see mitch mcconnell appear on the floor.

clearly he has nothing to say at this point because he doesn't feel there is enough to discuss publicly. for those sitting at home though, we should explain this in very simple terms. we are talking about two major issues that are facing the united states. the first issue is we have the federal government shutdown. we are all aware of that, several hundred thousand workers are sitting at home. we're heading into our third week and we're just days away from the u.s. treasury saying we could default on our debt. these are two major issue that is just so happen to be coming at the same time. so while it is very confusing, there are a lot of politics at play and that's what we're seeing play out on capitol hill. >> not only is there confusion, but there's frustration and it's boiling over. there's been an ongoing protest that's been happening all day long. it started at the world war ii memorial. it then moved on to the lincoln memorial, and then it went to the white house where police were prompted to get into riot gear. we have our jim acroosta there o give us an idea of what it is like there now and what the

scene was there. jim? >> reporter: miguel, it is much calmer here at the white house now. just to sort of give you a sense as to what was going on out there. we were out there for a good portion of this. as you just said a few moments ago, there were protesters here in washington today to demonstrate against the fact that some of the memorials have been closed down during the shutdown, that they've been barricaded outside the world war ii memorial. there have been barricades set up at the vietnam memoriam. a couple hundred protesters came over to the white house, the pedestrian part of pennsylvania avenue, and they carried those barricades over from the world war ii memorial and the vietnam veterans memorial and dumped those barricades out in front of the fence of the north lawn of the white house. and it created a fair lly tall pile of barricades. it was pretty attention-grabbing, you have to say, and at that point u.s. park

police came in, some of them in riot gear to separate the protesters from the white house fence. they were putting those dumped barricades together. they're erecting those barricades and lining them up to sort of push the protesters back, and as you can see in some of this video, it got very testy between some of the police officers and the protesters. a little bit of pushing and shoving, but for the most part pretty much everybody remained calm and now things have settled down in front of the white house and sort of the heightened state of alert we were seeing on the north lawn of the white house has basically subsided and has gone away. as for what you and candy and mark were just talking about a few moments ago, no word yet from this white house whether or not president obama will be meeting with anybody today, as you saw late yesterday. they released a photo of his meeting with harry reid in the senate and a few other senior democratic leaders who were over here at the white house. those talks were essentially to sort of get the democrats all in

sync, but as you probably noted throughout all of this, miguel, they have been a very much united front during the budget negotiations with republicans. harry reid was on the senate floor as you probably heard. he indicated he may be talking with mitch mcconnell later today, and he said that he was confident there might be some kind of deal in the works or that republicans may relent and give them the clean debt ceiling bill and the clean continuing resolution bill they have been seeking, but it's all very much in the air. but at least we can report at this point, miguel, that things have settled down outside the white house, although i can tell you that there are some vehicles going down pennsylvania avenue, park police vehicles, with their sirens on in case you're hearing some of that noise. >> we can hear that. >> reporter: but for the most part things have settled down here. >> these protests though are very emotional obviously. the veterans, many groups have not been happy with this administration and have expressed their concerns with

them. they have been growing over the days. there were world war ii vets that went owe the memorial to begin with. congressmen went out there to open the gates. the lincoln memorial, now this. there's a rebel flag out there, i see. do we know who these protesters are, who they represent? are these sort of the tea party side of veterans groups or who are these folks? >> there were a lot of tea party flags out here, a couple other flags representing other points of view, lots of signs that said a variety of things about the president. these were obviously not fans of the president, miguel. i think that's safe to say. but sun but, you know, this has been a very big hot button issue. this barricading and closing off of the world war ii memorial. as you know, that really got a lot of passions running inside a lot of veterans groups for world war ii veterans and for vietnam and other war veterans, and a lot of those folks were out here

as well. i talked to a number of them, and they said we're not here to start trouble, we're here to let the white house know, let this administration know that they're upset that they can't get to their memorials. of course, none of that can happen until the government is reopened again, and that's what the white house and congressional leaders are working on, although as mark and candy indicated, the clock is running. >> i want to go back to candy crowley. candy, you have seen so much over the years in washington, protests and anger and passion. where does this all fit into what you've seen in politics over the years? >> i think most people that have watched this for a while would tell you that it's pretty bad, not so much the confrontations and the stalemates. there are a lot of those on capitol hill and between capitol hill and washington, but the rhetoric, the intensity of the passion, all of that i think is at a very heightened level. you saw that in a microcosm in front of the white house. i think if there is a hope here,

it is that senator mcconnell and senator reid, the majority and minority leaders, may not like each other all that much, but they came to the senate at about the same time. they've had kind of parallel careers in their parties. they were both whips, people who count the votes on either side. they're both really good tacticians. they both understand how to make stuff work. and they met before when the house couldn't. it may be they do come up with something. obviously senator mcconnell has to worry about two things, whether it will pass muster with house republicans and what it might do back home because he's up for re-election next year. >> candy crowley, mark preston, and jim acosta, thank you all very much for your hard work. we're going to have more at the top of the hour. for right now, we will go back to fareed zakaria gps just after this short break. "fareed zakari

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now for what in the world segment. here is the traditional funny shirts class photo from apec. last week's asia-pacific economic cooperation summit. the president of mexico, russia, and many others were in indonesia. on the far right tucked away you see john kerry, the u.s. secretary of state. where is president obama? >> good afternoon, everybody. >> well, he was stuck in washington, of course, dealing with the government shutdown and threats of default. obama missed not only apec but also asean, the association of southeast asian nations summit as well as planned visits to malaysia and the philippines. for asians the symbolism was clear, the united states was struggling to get its house in order. and perhaps to highlight the contrast, china was present in full force putting on an exhibition of power and diplomacy.

president shi attended. consider the deals that were struck last week. china's president promised to triple his country's trade with ma lachey in four years. he courted australia's new prime minister to whom he promised more cooperation in trade. a new report from the nonprofit rand corporation shows the dramatic escalation of foreign aid. in 2001 beijing spent $1.7 billion on foreign aid. by 2009 it was spending nearly $125 billion. in 2010 the figure rose to $169 billion. by 2011, it reached $189 billion, about 3% of china's

gdp, and it is still going up. the money trail points to a country flush with cash looking to snap up resources and opportunities around the world. what has been less clear in the last two years is the effectiveness of beijing's foreign policy. as the chinese scholar jang wan points out, not a single member of chai china's standing commit is -- and china has made several missteps in the past three years. it escalated territorial disputes with japan, the philippines, and vietnam. it was seen as a bully flexing its muscles with its neighbors. these signals, mostly rhetoric, were a contradigction of not ony china's policy of a rise but of its track record. china has not actually been involved in a single war since

1979 when it had a skirmish with vietnam. but the moves worried its neighbors enough that they publicly asked for greater american involvement in asia. this past week china's leaders were at pains to display a softer face. they describe china as a gentle giant, not an aggressor. meanwhile, they put the focus back on the economy and building business ties with their asian neighbors. as lee pi put it last week, we should make the pie bigger and share this pie with our people. china's neighbors may worry about a big powerful giant but they still want to trade with it. president obama's pivot to asia has been one of his wisest foreign policy moves, well conceived and well executed, but it, too, has now been weakened. one more consequence of the vas vicious partisanship in wisconsin. washington keeps returning to

deadlock, repeats its most stupid moves, and continues to govern from crisis to crisis. it is a sad contrast that asia and the world can see. up next, a conversation with the ceo of goldman sachs, lloyd blankfein. we talk about the economy, wall street, and much more. surance c? yes. but you're progressive, and they're them. yes. but they're here. yes. are you...? there? yes. no. are you them? i'm me. but those rates are for... them. so them are here. yes! you want to run through it again? no, i'm good. you got it? yes. rates for us and them -- now that's progressive. call or click today.

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get 50% off new brake pads and shoes. i'm miguel marquez with a check of our top stories. breaking the budget impasse is the sole focus today of the highest ranking republican and democrat in the senate. majority leader harry reid and republican leader mitch mcconnell are holding talks just four days before the u.s. runs out of money to pay its bills. the senate is in session today. jim acosta is live at the white house. jim, is the president taking part in any of these talks? >> reporter: not that the white house has announced. what they have said so far is that the president is being kept up to speed by his staff on basically the effects of this shutdown. white house put out a statement earlier this morning to that effect. there was some excitement outside the fence of the north lawn of the white house earlier today, miguel, when a few hundred protesters who were protesting outside of the monuments here in the nation's capital decided to remove some

of the barricades around the world war ii memorial and dump them in front of the white house. that drew the response from the u.s. park police who came out, some in riot gear, to disperse that crowd. everybody left peacefully but there was some pushing and shoving. harry reid and mitch mcconnell may be talking again later today. reid said that to some extent on the senate floor just a little while ago, about you at this point there really is no -- any prospect at this point for any kind of deal. just isn't at that stage just yet, miguel. >> tensions, passions, stakes all very high in washington. jim acosta, thank you very much. >> you bet. in india, 14 people are dead after a powerful cyclone hit the country's east coast. tropical cyclone phailin made landfall with the force equivalent to a category 4 hurricane. nearly 1 million people had been evacuated ahead of the storm. we will be back at the top of the hour with more. we'll rejoin "fareed zakaria

gps" now. the government shutdown and default debate have caused everybody stress, from the retired teacher with a pension to america's biggest corporations, all worried, all more cautious with their spending and investment. and that's one of the tragedies of these past two weeks because before then the american economy was really showing impressive signs of revival. those positive signs are what i talked to goldman sachs' chairman and ceo lloyd blankfein about when he sat down with him recently at the clinton global initiatives annual meeting here in new york. listen in. lloyd, when you look at the u.s. political system, it seems deadlocked, paralyzed, use whatever phrase one wants, but the american economy seems to be coming back in a pretty broad way. >> because it's pretty resilient.

and, listen, the american economy, you're right, it's going well and there's a lot of tailwinds, energy, you could tick through the amount of tailwinds that are happening, but i think ultimately it's the culture of the united states. we all have the same noise, the same dealing with the consequences of the credit bubble, but in the united states we recapitalized the bank. it was painful. people didn't like the way it was done. by the way, and the aftermath was also hard. but it got done. restructured, accepted a higher unemployment rate, in other words didn't make people keep the same employment, didn't -- as often happens in europe when you have that, you know, different balance between social interests and economic interests. did all that painful stuff, and now it's as noisy as can be. in other jurisdictions you had all the noise, all the confrontation, but you didn't

actually get anything done and all that remains forward, so the united states is in a position where, again, banks are recapitalized, companies are efficient, not because they protected employment. sadly, because they accepted unemployment -- higher rates of unemployment. that's a social decision that gets made. it's not unreasonable to make a different one but that's what gets made in the united states but now that those companies are stronger, they're in a position to grow, to hire people back, run their businesses on a sustainable basis, very liquid, a lot of cash, and i think well positioned for the recovery. and by the way, what growth we have now, it's not that qe represents the first steps to normalization, we're all tense and nervous whether the economy can absorb it, we've already taken a substantial number of steps towards normalization. the biggest subsidy the economy had was the fact we were spending so much money and then taking it in taxes.

we've closed up a substantial amount of that budget gap. sequestration, payroll taxes, higher taxes on other things. one step towards normalization was for the ten-year interest rate to go up from 1.5% to almost 3%. those are all steps towards normalization. the removal of the tapering off qe will be another step, but it's not the -- >> you don't fear it. you're not one of those people who says once the fed starts withdrawing these extraordinary measures, the whole system collapses. >> it joins a long parade of things over which i'm anxious and that's an element. it's not the first step, and can the economy, whatever growth we're seeing now is already in the face of the headwinds of a convergence of our spending and our revenue, maybe not to the same place that some people would want it, but maybe two-thirds there. >> two-thirds of the way -- >> two-thirds of the way there. >> to simpson/bowles target. >> all the growth we see this

year is in the face of that. in other words, we've already absorbed some of the consequences of normalization. the tapering of qe is not the first step. >> lloyd, let me ask you this, is it fair to make this, you know, kind of moral equivalence, if you will, yes, both parties are moving in partisan directions, but only one party is threatening to blow up the united states' credit rating. >> you know, that's right at the moment, and, look, i can -- you can find fault -- again, in the substance of it, you could say also part of the problem was, you know, this is not -- we don't have a parliamentary system. we have a system where the moderates of both parties are supposed to unite together and have a moderate solution, which by the way, may or may not be the right result, but it certainly brings about the most stable result because then when the party in power shifts, the

next party had already signed onto it, made its contribution, owns it. for one moment in my life we had a parliamentary system in effect where you had both houses had a veto proof majority and the president was of one party and it passed legislation without having that compromise and consequently it didn't. and that created a very unstable situation. so the reaction to that i think is a terrible reaction. you could go back to a first cause and say if some of these elements and some of the legislation that had gone on -- >> if obama had been passed with more republican support. >> more republican support and the concessions -- maybe the minor, maybe some modest concessions that would have had to make to earn that support, it would have been a much more stable outcome. again, some people's -- you know, does democracy produce the best results? in a way.

it produces the most stable results and the most stable tends to be the best results. so now we have a situation where we have obama care, and the republicans want to destroy it, and the democrats want -- and eventually you're going to have a change of government. it's not a good situation. so i could find -- i could see the world through the lens of either side. right now my focus is really on what the republicans are doing, which i think is -- which i don't consider to be the best constructive civic behavior because if they don't like the resolution but it is resolved, to go about and say i'm going to blow up the budget or i'm going to blow up the credit, i'm not going to pay for debts that i had already taken on, i don't think that's right. if you go a step back and you see the underlying cause for their frustration, that wasn't right either. >> up next, more of my conversation with lloyd blankfein, including how he intends to mark the second anniversary of the occupy wall street movement. >> i must send flowers.

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more of my conversation with lloyd blankfein, the ceo of goldman sachs. i was moderating a panel

discussion at the clinton global initiative alo initiative. along with blankfein is jim rogers who is retiring from duke energy and dennis o'brien, the owner of digicell. listen in. one piece of the american recovery, jim, has been the energy story. tell us from your perspective how big is that story, you know, of shale, of natural gas, of oil. i think everyone was expecting a technological revolution in energy, and they all expected it would be wind and solar, and there was a technological revolution in energy, but it was in the extraction of hydrocarbons, direct? >> that's correct. shell gas is probably the most transformative innovation that's occurred in this country in over a decade. it's been a great -- i mean,

it's been, as lloyd said a tailwind to the economy, but also in terms of achieving our environmental goals, we're in the 1993 -- '92-'93 level of co2 emissions in this country, and yet we have significantly more people and a much larger economy. so i think that it's been transformative both in driving our economy but transformative in meeting our environmental objectives, at least as far as climate change is concerned. >> that was jim rogers, the chairman of duke energy. i also asked my panelists about income inequality, a hot topic not only in america but around the world these days. how did we get so unequal and what responsibility do corporations have to fix the problem? listen in. >> this is now a kind of anniversary of the occupy movement. there's inequality and protests around inequality in many of these countries from brazil to

turkey. >> america. >> right. so let me ask you, looking back, you know, with occupy wall street, you know, having its anniversary, what do you think it all means? >> incidental -- >> i must have missed it. i didn't even realize this was such a big anniversary. i must send flowers. look, i think there was -- i think in the world today, and partly as a result of rapid change in technology, there are -- there's a bit of a winner-take-all aspect in some of these aspects. if somebody makes a good product, they want the great product. there's no doubt that the flat world has had some adverse consequences in addition to the great consequences, all these open markets are making the manufacturing of every tv in the world is going to take place in

taiwan and it's not going to take place here. companies have to compete and win. and if a country comes in second, they may not get anything in a certain kind of product who win a lot. and a lot of people who aren't able to keep up competitively and it is a bad situation and it is not just made better by distribution. people don't want to be sustained. kids getting out of school need jobs in order to have jobs they have to be in the context in which things are made that other people want to buy. it became less true in the united states over the last generation. in cucome redistribution is parf a problem. but the real thing in the united states and countries who want to be successful is you have to be

competitive. you have to be at a rate where you beat out other competitors. even require land. you have had a huge expansion. >> i think ireland has had to take heavy doses of cod liver oil that has been very, very tough for several years. we got ahead of our selves and now we are an emerging economy again along with spain and portugal. coming back to what lloyd was talking about there. and you mentioned the occupied wall street. i would be on the left of that. we should be listening to some of the things that they say. and if you look at cgi, it is

the perfect anecdote to that. major corporates whether they are in the us or all around the world need to do more in their communities. goldman sacs has done wonderful initiatives. but we need to move away from this to doing something impactful. i think in africa, and in all the emerging markets, companies that invest have to do something meaningful to change that country. and i think what you know this is all about is really doing that. people standing up and saying, making a promise to do something and more and more those kind of things will i think be the anecdote to the occupied wall street movement. >> did you learn anything from

it? >> there were a lot of lessons being given at the same time. it is hard to separate them out. but of course i did. i would like to say something and respond. the biggest contribution that we make is not going to be in the philanthropic thing. but it is in our core businesses. one thing that i would like to say that the wall street interests and others is that business has helped lift people out of poverty and it has filled in the gaps. but business do i would take the latter. >> that was lloyd blaykfein of gold ban sacks. >> up next a number of things

that what got requiiranians rea mad was a comment on clothing. we will be right back.

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on tuesday, the u.s. federal reserve began circulating new $100 bills for the first time in more than a decade. it brings me to my question of the week, what country is the highest producer of counter fit bills? stay tuned and we'll tell you the correct answer. you can also follow us on twitter and facebook. this week's book of the week is "it's even worse than it looks". this was the book i mentioned earlier. if you want to understand what is happening in washington. you have to read this book. by two impartial scholars that dissects how we got here and where we are likely to go.

it is no surprise that israel's prime minister offended somewhat what he said at the united nations but that comment wasn't what sparked a twitter campaign in iran last week although it was a clothing related faux paux. i believe they would have western music. they would have free elections. iranians do where jeans. we saw a lot of people in denim two years ago like this man and that man and it goes on and on and on. as i said at the time it is a bustling cosmopolitan city and it's people are fashionable. but the people found the comment condesending. the message wasle